New Zealand’s services sector continued to show solid levels of expansion in May, according to the BNZ – BusinessNZ Performance of Services Index (PSI).
The PSI for May was 56.9. While this was 0.9 points lower than April, this was the same level of activity as February, and continues a post-55 level of expansion since November 2014 (A PSI reading above 50.0 indicates that the service sector is generally expanding; below 50.0 that it is declining).
BusinessNZ chief executive Kirk Hope said that despite the slightly lower level of expansion for May, the fundamentals behind the main PSI result were still positive.
“Both activity/sales (60.6) and new orders/business (60.1) continued to keep their head above the 60-point mark, while employment (54.5) was at its highest level since November 2015. In addition, the proportion of positive comments (67.6%) tended to outline a combination of a continued market demand and new market opportunities for a sizeable number of businesses.”
Regarding the latest PSI result, BNZ Senior Economist Doug Steel said ‘New Zealand’s current economic expansion is being underpinned by a rising population and booming tourism. With labour demand also buoyant, it is all helping lift sales activity including across the service sectors.’
Struggle street
New Zealand’s services sector continued to contract further in April, according to the BNZ – BusinessNZ Performance of Services Index (PSI). The PSI for April was 47.1 (A PSI reading above 50.0 indicates that the service sector is generally expanding; below 50.0 that...
